A recent study by the Korea Fair Trade Commission (KFTC) has confirmed that online platforms can significantly influence consumer behavior through algorithmic manipulation. The research reveals that by prioritizing their own products in search rankings, platforms can induce users to purchase items even when they are 10% more expensive than competitors.

The Power of Rankings

The KFTC study shows that shoppers are heavily dependent on platform-suggested rankings. Over 51% of purchases are concentrated on the top five products, and 94.6% of consumers complete their shopping on the first page. Strikingly, only 25% of users change default sorting criteria, and nearly 84% never use filtering features.

Distortion of Choice

The most striking finding was the impact of ranking manipulation. When a product was moved from the lower tier to the top, its purchase rate jumped from 1% to 35%, even after a 10% price increase. Consumers often misinterpret top-ranked items as a signal of high quality, disregarding price or value. Even when platforms disclosed potential biases, these notices had little effect, sometimes even increasing the purchase rate of self-preferenced goods.

Regulatory Implications

This study aligns with global concerns regarding platform "self-preferencing." Internationally, regulations like the EU's Digital Markets Act (DMA) aim to prevent platforms from favoring their own services. As KFTC researchers noted, "Consumers are easily misled into viewing rankings as quality signals." The findings suggest an urgent need for stricter oversight to ensure fair competition and protect consumers from deceptive algorithmic control in the digital marketplace.

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